The Fed put explained


Steve Sosnick, Interactive Brokers’ chief strategist, discusses if he thinks the US Federal Reserve is exercising its “put.”

The basic idea behind a Fed put is that if the market gets too volatile, the US central bank will step in and calm things down with accommodative monetary policy.

Is Fed Chairman Jerome Powell doing the same with his recent openness to rate cuts? Check out the following video to find out what Sosnick has to say on the subject.



Photo Credit: bradhoc via Flickr Creative Commons


Interactive Advisors

About Interactive Advisors

Interactive Advisors is a pioneer in online investing. Interactive Advisors offers a variety of portfolios, including the Smart Beta portfolios, which are managed by Interactive Advisors's Chief Investment Officer and Investment Management team. The “Smart Beta” approach to portfolio construction is grounded in academic research. The goal is to achieve an alternative risk-return profile which is more attractive than a simple capitalization-weighted index such as the S&P 500. Interactive Advisors Smart Beta portfolios are designed to provide systematic exposure to a fundamental factor or combination of factors. Portfolios are constructed using a rules-based approach and offered at a relatively low cost.